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	UNITED STATES DISTRICT COURT WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION AMWAY CORPORATION, ) ) Plaintiff, ) CASE NO. 1:98 CV 726 ) v. ) (JURY DEMANDED) ) THE PROCTER & GAMBLE COMPANY,) HON. ROBERT HOLMES BELL PROCTER & GAMBLE DISTRIBUTING) COMPANY, SIDNEY SCHWARTZ, AND) KENNETH LOWNDES, ) ) Defendants. ) ____________________________________ SECOND AMENDED COMPLAINT

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
AMWAY CORPORATION,	)
        			)
Plaintiff,  		)		CASE NO. 1:98 CV 726
					)	
 		
v.					)		(JURY DEMANDED)
					)
THE PROCTER & GAMBLE COMPANY,)		HON. ROBERT HOLMES BELL
PROCTER & GAMBLE DISTRIBUTING)
COMPANY, SIDNEY SCHWARTZ, AND)
KENNETH LOWNDES, 			 )
                            )
Defendants.				     )
____________________________________

						
							SECOND AMENDED COMPLAINT

I. THE PARTIES

1. Plaintiff Amway Corporation ("Amway') is a Michigan corporation with its principal place of business in Ada, Michigan. Two young entrepreneurs, Rich De Vos and Jay Van Andel, founded Amway in the basement of their Ada, Michigan, homes in 1959. Shortly thereafter, Amway began manufacturing in a nearby 2,400 square foot building. Amway's expansion has continued steadily ever since. While Amway's headquarters remain located in Ada, it now has affiliated operations in 45 countries. Amway and its affiliated companies have over 14,000 employees.

2. Over 450 products are sold under the Amway name, including laundry detergent, household cleaning products, cosmetics, skin care products, food supplements, and various household goods. In addition, over 6,500 brand name products are offered through Amway catalogs. In 1998, Amway's estimated retail sales. totaled $5.7 billion worldwide.

3. Amway's products are marketed and sold through a network of independent distributors rather than through traditional retail stores. Persons from all walks of life are Amway distributors, including (for example) physicians, lawyers, elected government officials, architects, chemists, dentists, professors, veterinarians, nurses, accountants, policemen, firemen, ministers, teachers, and homemakers. In the U.S., there are approximately one million independent distributors of Amway products, and worldwide there are approximately three million distributors.

4. Defendant The Procter & Gamble Company is an Ohio corporation with its principal place of business in Cincinnati, Ohio. It is therefore a citizen of Ohio. The Procter & Gamble Company and its subsidiary and affiliated companies manufacture and distribute consumer products such as home care, products, laundry detergent, household cleaners, and health and beauty products, and sell them in Michigan and throughout the United States.

5. Defendant The Procter & Gamble Distributing Company ("Procter & Gamble Distributing") is an Ohio corporation with its principal place of business in Cincinnati, Ohio. Procter & Gamble Distributing is therefore a citizen of Ohio. Procter & Gamble Distributing sells and distributes Procter & Gamble products (including those identified in the preceding paragraph) to its customers, which include retailers and wholesale distributors throughout the United States, including within the State of Michigan. Procter & Gamble Distributing is a subsidiary of The Procter & Gamble Company. (These Defendants are collectively referred to as "P&G".) Certain Amway products compete indirectly with certain P&G products.

6. Defendant Sidney Schwartz ("Schwartz") is a resident of Oregon and is the operator of the Internet web site entitled "Amway: The Untold Story," which can be found at the address http://www.teleport.com/~schwartz. As alleged more fully below, Mr. Schwartz has committed and is committing tortious acts with the intent and effect of harming Amway in Michigan.

7. Defendant Kenneth Lowndes ("Lowndes") is a resident of Oklahoma and is the operator of the Internet web site entitled "Lowndes for Congress," which has been maintained at the address http://members.aol.com/NoMonarchy/indexl.html. As alleged more fully below, Mr. Lowndes has committed and is committing tortious acts with the intent and effect of harming Amway in Michigan.

8. The Defendants have conspired together, and aided and abetted each others' independent acts, to damage or destroy Amway's business using the Internet.

II. JURISDICTION AND VENUE

9. The jurisdiction of this Court is based upon diversity of citizenship pursuant to 28 U.S.C. § 1332. The citizenship of the parties is completely diverse and the matter in controversy exceeds, exclusive of interest and costs, the sum of seventy-five thousand dollars ($75,000).

10. Venue is proper in the United States District Court for the Western District of Michigan under 28 U.S.C., § 1391.

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This page updated Jul-26-99